Better Health for All

Iberdrola reported 41 marketing incidents and 1 labeling incident resulting in fines in Spain in 2022.

The company invested €360 million in 2022 for electrification initiatives, including green hydrogen, smart grids, and energy storage. Iberdrola aims for zero net emissions at generation plants and own consumption by 2030, and across its entire business by 2040, with specific emissions data reported for CO2, NOx, SO2, and particulate matter. The company supports programs addressing health disparities, such as the Iberdrola UNICEF alliance promoting education and employment for vulnerable youth, and offers social programs through various foundations. Iberdrola provides more than 68 hours of training per employee per year, along with wellness programs, mental health support, and health insurance. The company promotes health and prevents diseases among employees through vaccination campaigns, health exams, and recommendations for healthy diets. Iberdrola has a Personal Data Protection Policy aligned with GDPR, including a data protection management system and an external evaluation plan. During the COVID-19 pandemic, Iberdrola implemented measures to support employees and customers, including adjusting sanitary, communication, cleaning, and disinfection measures, and initiating well-being and early intervention programs. The company offers mental health support to employees through training resources on managing psychosocial factors, workshops on emotional management, and well-being programs. Iberdrola supports various educational programs and awareness campaigns related to health literacy and public health education.

Fair Pay & Worker Respect

In 2021, the CEO's compensation was 171 times the average employee salary.

The median pay equity ratio for women and minorities versus majority peers was 0.9332 in 2021. The employee engagement score was 71% in 2023. Iberdrola was sanctioned four times by the Spanish National Court in the last two years for issues including imposing a double salary scale, improper use of telematic voting in union elections, and failing to adjust pension benefits in line with inflation. Additionally, the company incurred $2,270,948 in penalties for employment-related offenses since 2000, including a $2,000,000 penalty in 2008 for employment discrimination.

Honest & Fair Business

A unit of Iberdrola was fined $466.4 million by Mexico's energy regulator.

The company scored 33 out of a possible 34 points in the Fundación Haz Compliance 2025 transparency and good-governance ranking, which is approximately 97.06 out of 100. Iberdrola has an Internal Reporting and Whistleblower Protection System that prohibits retaliation against reporters in good faith, ensures anonymity and confidentiality, is managed by a Compliance Unit, and offers multiple submission channels including a website form, post, and an anonymous communication channel. The company has had zero financial restatements in the past five years. Approximately 90% of assets are covered by external audit, and significant ESG reporting is published, audited by a third party. Iberdrola is involved in 18 stakeholder-related ESG controversies, with 8 of minor, 7 of significant, and 3 of high severity. The Board and its committees display a high level of independence, with approximately 78% independent directors. The company has an Anti-Corruption and Anti-Fraud Policy, initially approved in 2016 and last amended on March 25, 2025, which promotes a preventive culture of “zero tolerance” for corruption and bribery, and includes third-party due diligence for suppliers. The Sustainability Report is subject to independent external verification by the Spanish Accounting and Audit Institute (ICAC), and GRI compliance is verified by a third party.

Kind to Animals

Iberdrola aims for a net positive impact on biodiversity by 2030 and no net deforestation by 2025.

The company has undertaken over 4,000 biodiversity actions in the last five years, including adapting 234,000 electrical supports, which saved 1,223 birds in 2018-2019 and 745 birds in 2020 from electrocution. It has protected 450,000 hectares of habitat and released 18 Cantabrian capercaillie specimens. The company preserved a red kite roosting site protecting over 1,000 specimens and reported an increase in Cabrera vole presence from 4-7 to 17 at a photovoltaic plant. Over 770,000 trees have been planted through Carbon2Nature and over 100,000 through Fundación Iberdrola España in Spain, with over 1 million trees planted in Brazil. Additionally, 131 hectares of peatland have been restored in Scotland, and a $3 million fund has been established for marine mammal protection and monitoring for the Vineyard Wind 1 project. Iberdrola supports international negotiation processes for biodiversity and ocean conferences, and collaborates with organizations like Business for Nature, WBCSD, ICC, WEF, and the UN Global Compact. The company is a member of the Spanish Business and Biodiversity Initiative and the EU Business @ Biodiversity Platform.

No War, No Weapons

Iberdrola's 2022 Human Rights Report explicitly states alignment with the UN Guiding Principles on Business and Human Rights (UNGPs) and details specific actions, which is consistent with issuing annual human-rights reports.

The company's Code of Conduct for Directors, Professionals, and Suppliers outlines general ethical guidelines and commitments to human rights, but it does not codify specific 'red lines' such as bans on cluster munitions or other categories of conventional arms. There is no evidence provided regarding the company's exposure to controversial or banned weapons.

Planet-Friendly Business

Iberdrola's net-zero target for 2039 is validated by the Science Based Targets initiative (SBTi), with short, medium, and long-term GHG reduction targets aligned with a 1.5°C pathway.

The company aims for carbon neutrality for Scope 1 and 2 emissions by 2030 and net-zero for all scopes (1, 2, and 3) by 2040. Iberdrola has committed to implementing TCFD recommendations, signposts TCFD-aligned disclosures in its annual reporting, and employs climate-scenario planning, including a 1.5°C scenario, with disclosed results. However, its financial statements only partially incorporate material climate-related matters and do not disclose quantitative climate-related assumptions. While Iberdrola has committed to the principles of a Just Transition, it does not commit to retaining, retraining, redeploying, or compensating workers affected by decarbonization efforts, nor does it disclose plans for consultation with affected communities.

Respect for Cultures & Communities

The provided articles do not contain specific, quantifiable data points for any of the KPIs under the 'Respect for Cultures & Communities' value. While the company's sustainability and human rights reports mention community engagement, consultations, and FPIC processes, they do not provide the required metrics such as the number of formal partnerships, percentage of revenue reinvested locally, cultural appropriation incidents, specific cultural impact assessment protocols, local employment ratios, coverage of grievance mechanisms by site, average complaint resolution times, FPIC participation rates, community governance inclusion, cultural preservation investment, local procurement share, indigenous supplier count, specific cultural site protection actions or incidents, social license percentages, charitable giving to cultural organizations, community fund allocation, language inclusivity scores, cultural incident response effectiveness, or cultural sensitivity training completion rates.

Therefore, no KPIs can be scored based on the evidence provided.

Safe & Smart Tech

Iberdrola experienced a data breach between May 5th and 7th, 2024, affecting 850,000 customers, with 1.5 gigabytes of data stolen.

This incident was reported to the Spanish Data Protection Agency and law enforcement. The company also had a breach on March 15th (year not specified) affecting over one million customers, compromising customer ID numbers, home addresses, email addresses, and phone numbers, which was remediated within a day. Iberdrola has a Policy on the Responsible Development and Use of Artificial Intelligence Tools, updated March 25, 2025, which outlines principles for responsible AI development and use, including respect for human beings, equal opportunity, innovation, privacy, transparency, security, and training, and addresses avoiding bias. In 2024, Iberdrola invested 290 million euros in digitalization, which includes cybersecurity. The company holds various ISO 27001 certifications for different business units and services, such as digital channels, smart metering, and critical infrastructure systems. Iberdrola implements a multi-year cybersecurity culture program with training sessions for all levels, including Board members and managers, and online training for employees, along with monthly phishing campaigns. The company's Privacy Policy, updated November 13, 2024, outlines user rights for data access, rectification, and erasure, and states compliance with GDPR and LOPDGDD. It also mentions collecting only necessary data and limiting retention. Iberdrola has a global vulnerability management program covering IT/OT/IoT assets and conducts regular simulation exercises to test response plans. The AI policy mentions security mechanisms to protect AI systems and data integrity.

Zero Waste & Sustainable Products

Iberdrola achieved a waste diversion rate of 83.99% in 2024, with 453,868 tonnes allocated to recovery out of 540,389 tonnes of total waste accounted for.

The company has implemented waste reduction initiatives, including the EnergyLOOP wind turbine blade recycling plant, which has a processing capacity of up to 10,000 tonnes per year. Additionally, Iberdrola achieved approximately a 90% recovery rate for coal plant waste. For hazardous waste, 10,000 tonnes were allocated to recovery and 1,000 tonnes to disposal in 2024. The company has not reported any waste disposal violations in the past three years.